The Northern Territory government has suspended applications for pokies licences at Alice Springs pubs and hotels for nine months after widespread community backlash.
Hospitality giant Iris Capital has applications in for 60 new pokies to be installed in pubs and hotels across the town, including in multiple venues where there were previously none.
But the government has received almost 700 submissions from residents calling for the Director of Gaming Machines to refuse the applications.
Iris Capital will now have to wait until June 2023 to discover the outcome.
Gaming Minister Chansey Paech said the government was listening to the community and would use the pause to strengthen the licence application process.
He said that would include improving harm minimisation policies and practices as well as making community impact assessments — which were conducted by applicants — more independent.
"In nine months' time, the director of gaming machines will assess the applications based on the new process," he said.
Campaign sparks suspension
The moratorium comes after community members said new machines would disproportionately affect some of the region's most vulnerable residents.
"We know gambling in general can entrench people in poverty and disadvantage," Mr Paech said.
Local community campaign, No New Pokies in Mparntwe, welcomed news of the suspension, but called for the suspension to include the entire territory.
"The community concerns clearly remain,” spokesperson Jonathan Pilbrow said.
"We are still calling on the Director of Gaming Machines to reject these applications, once the moratorium is lifted in June 2023."
Lasseter's Casino, which is also owned by Iris Capital, will not be impacted by the pause as it has a separate agreement with the government.
Since purchasing the casino for $105 million last year, Iris Capital has already added at least 115 machines to the Alice Springs venue, bringing it to a total of almost 300 machines.
Hospitality sector 'gazumped'
Hospitality NT chief executive Alex Bruce said the announcement was a "kick in the teeth".
"We appreciate that there's very mixed views on gaming ... that's why we advocate for a rule-based law that has a due process," he said.
"But today, that due process has been gazumped by the government."
Iris Capital has previously indicated the outcome of the licence applications would shape its future investment in Alice Springs.
But Mr Bruce said it was too soon to say what the impact of the pause would be.
"But from an industry perspective, we've seen this government, over the course of last six years, come in a couple of times with minimal notice, and shift the playing field," he said.
"That does send shock waves right across the country on whether we're providing the right environment for investment to go forward."
Iris Capital has been contacted for comment.
